The Federal Ministry for Economic Affairs and Climate Protection (BMWK) today published the new funding guideline “Federal Funding for Industry and Climate Protection (BIK)”. In the future, the new funding will primarily support industrial SMEs in decarbonization. According to current planning, around 3.3 billion euros are available for the funding program for the entire program period. The first call for funding is expected to start in September 2024. Companies will then have three months to submit their projects.
Federal Minister for Economic Affairs and Climate Protection Habeck: “Today is a good day for small and medium-sized businesses, for climate protection and for jobs in our country. With the new funding, we are supplementing the climate protection agreements and specifically addressing small and medium-sized businesses. We also want to support the many small and medium-sized production companies in particular in their transition to low-CO₂ processes.”
The funding program is to run until 2030, and there are to be annual funding competitions. Funding comes from the Climate and Transformation Fund (KTF). The Federal Funding for Industry and Climate Protection (BIK), as the successor to the Decarbonization in Industry (DDI) program, complements the BMWK’s funding offer and enables innovative small and medium-sized transformation projects to be implemented regardless of industry or technology. For example, switching to electricity can make sense where fossil fuels are still used in processes that require high temperatures.
The BIK is used alongside the instrument of climate protection contracts and is specifically aimed at small and medium-sized enterprises. BIK and climate protection contracts are coordinated with each other and cannot be combined. Funding opportunities start with a project size of 500,000 euros for small and medium-sized enterprises (SMEs) and one million euros for large companies. For a project volume of 15 million euros or more, the federal states will provide co-financing of 30 percent.
More in detail:
Two funding modules are available under the BIK:
1. Promotion of decarbonisation projects (Module 1)
The funding is aimed at all industrial companies that plan or operate plants with industrial processes and want to save at least 40 percent of their CO₂ emissions in production through investments or research projects. The grant recipients must have a business premises or branch in Germany, as the project must also be implemented in Germany. Module 1 is aimed at companies in the energy-intensive basic materials industry, such as the chemical basic materials industry, the steel and foundry industry, the glass industry, the ceramics industry, the paper and pulp industry, the cement and lime industries. However, the funding is expressly not limited to these areas.
The maximum funding in Module 1 is up to 200 million euros per company.
Module 1 is the continuation of the successful “Decarbonisation in Industry” programme, which was launched in 29 Projects throughout Germany with a volume of around 578 million euros.
2. Promotion of CCU and CCS (Module 2)
In line with the key points of the Carbon Management Strategy, which were adopted by the Cabinet on May 29, 2024 and which define Germany’s approach to the capture, storage and use of CO₂ (CCS/CCU), there is a funding opportunity for CCS/CCU investment and innovation projects. Funding is limited to CO₂ emissions that are difficult to avoid. In the first call for funding, investment projects in the lime, cement and thermal waste treatment sectors are eligible; innovation projects can also be funded in the basic chemicals, glass and ceramics sectors. The BIK is thus making an initial contribution to the implementation of the key points of the Carbon Management Strategy.
Investment projects are eligible for funding of up to 30 million euros; industrial research projects are eligible for funding of up to 35 million euros.
Further information about BIK can be found here.
Further information documents can be found linked below:
